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| India’s Steel |
Infrastructure Boom and Production Growth
India’s steel industry continues its rapid expansion, reaching a production capacity of 205 million tons per year in fiscal 2025. This marks a 10% increase from 186 million tons in 2024 and nearly double the capacity recorded in 2015. The growth reflects strong economic development, urbanization, and large-scale public investment in infrastructure, according to BigMint.
Both public and private sector steelmakers are scaling up production. Industry leaders such as JSW, Tata Steel, and SAIL have significantly increased capacity to meet rising domestic demand. In 2025 alone, cumulative capacity expansions reached 13 million tons, with JSPL and AM/NS India also implementing aggressive growth strategies.
Traditional steel production has seen strong growth, with blast furnace capacity up 17% year-over-year (to 88.5 million tons) and induction furnace capacity rising 9% (to 74 million tons). Electric arc furnace capacity remained steady at 43 million tons. Overall, India’s steel production increased by 6% y/y, reaching 152 million tons in 2025.
Market Challenges and Trade Dynamics
While capacity expansion strengthens India’s steel sector, it also raises concerns about oversupply, pricing pressures, and shrinking profit margins. Additionally, global trade policies are complicating export prospects. India’s steel exports declined by 33.7% y/y to 4.4 million tons, while imports surged by 15.8% y/y to 8.98 million tons, further impacting market dynamics.
According to GMK Center, in the first 11 months of FY2024/2025 (April 2024 – February 2025), India produced 138.21 million tons of steel, up 5.2% y/y. Rolled steel output rose 5% to 132.89 million tons, while domestic consumption jumped 11.3% to 137.82 million tons. The industry’s growth trajectory remains strong, but balancing supply and demand will be critical for sustaining profitability.
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